The company said although there was a growth in business, the overall market was subdued by relatively high interest rates and advances were lower than expected, which impacted new business profitability levels.
LV= said the reduction in interest rates and strong investment returns delivered last year would “lead to an increase in volumes during 2025”.
The group’s protection business also improved, and it completed £398m in new business sales, compared to £356m the previous year on a present value of new business premiums basis.
This was made up of £46m in new business regular premiums, up from £43m in 2023, which LV= said would continue to generate premiums for the company in years to come.
These sales generated £15m of trading profit, up from £14m previously, which it attributed to strong volumes and pricing changes made to maintain value and manage customer experience.
£2.5m paid to help broker clients benefit from greener homes
Sponsored by Halifax Intermediaries
In 2024, 95% of personal protection claims were settled and LV= paid £136m to policyholders.
LV=’s profit before tax more than halved from £107m to £51m, which it said was impacted by the mutual and exit bonuses given to eligible with-profits members of £29m. The year before, it paid £30m.
David Hynam, chief executive of LV=, said: “As a mutual, members come first. Since 2011, we’ve shared a total of £414m in member bonuses, of which £29m will be distributed to 280,000 eligible members as a result of our 2024 results.
“Our financial performance is a result of our forward-looking strategic approach and points to the significant benefit of our diversified portfolio, which includes award-winning products, services and advice. We’ve seen positive sales growth across protection and equity release, and strong investment performance from our Smoothed Managed Fund range.”
He added: “We are well-positioned to further enhance investment and financial performance. We remain steadfastly committed to doing the right things for our members, customers and advisers, and continuing to deliver for this and future generations to come.”
